Toyota Motor Corp. lowered its annual guidance as it warned of a ¥1.4 trillion ($9.5 billion) hit to its bottom line from U.S. tariffs that have rattled the global automotive industry.

The world’s biggest carmaker now sees ¥3.2 trillion in operating income for the fiscal year ending in March 2026, it said Thursday. That’s down from its initial forecast of ¥3.8 trillion, and also missed analyst expectations.

The carmaker reported operating income of ¥1.17 trillion in the first quarter, down 11% from a year earlier, though beating analysts’ predictions for ¥890 billion. While price hikes in some regions helped that metric, the tariff impact was ¥450 billion for the period.

The outlook, which coincides with the start of President Donald Trump’s sweeping new tariffs, marks the carmaker’s mo

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